The US Federal Reserve announced on Wednesday, June 14, that it would maintain the current interest rates, opting not to raise them for the 11th consecutive time. This decision comes as the central bank carefully assesses the repercussions of the previous 10 rate increases on the economy.
However, the Federal Open Market Committee's recent decision to refrain from increasing interest rates during this meeting was accompanied by a forecast indicating that two quarter percentage point hikes are expected before the year's end.
After a two-day gathering, central bankers announced that they would wait an additional six weeks to evaluate the consequences of their policy actions, as the Federal Reserve wages a battle against inflation, which has recently exhibited some promising if uneven signs.
Consequently, the key borrowing rate maintained by the Fed remains within a target range of 5 percent to 5.25 percent.
The statement released after the meeting stated, "holding the target range steady at this meeting allows the Committee to assess additional information and its implications for monetary policy."
The Federal Reserve's next meeting is scheduled for July 25-26.
